U.S. Stock Futures Are Lower Driven by Weaker Than Expected Earnings
U.S. stock futures are lower: Equity futures are trending lower driven by weaker than expected earnings and this volatility, in both directions, is expected to persist as major companies report financial results. Treasury rates inched up as the Bank of England (BOE) hiked its main benchmark rate. The BOE raised the Bank Rate to 0.5% from 0.25% and this increase represents the first back-to-back hike since 2004. Higher rates were precipitated by inflationary pressures in Britain. Conversely, the European Central Banks kept interest rates unchanged and expects inflation to dimmish throughout the year. Higher rates sent European stocks down in midday trading. Jobless claims for last week were 238k versus consensus of 250k, rates remained flat post release. Asian markets closed lower.